Study Says Daimler Will Overtake Tesla In EV Rank – Model 3 Issues Cited For Fall

German car makers could catch up to Tesla in just a few years

The current state of affairs at the German car industry giants – Daimler AG, BMW AG and Volkswagen AG – sort of resembles that first day of boot camp when the hardened drill sergeant comes into the dorm room at 4 in the morning and pulls off the fire alarm. In a nutshell, everybody’s scrambling and for the most part, look like headless chickens trying to make themselves look useful. However, according to Bloomberg, just like the marine recruits, after a few months of proper testing and training, the German car industry is set to reinvent itself as an electric vehicle powerhouse.

According to a consultancy’s ranking of electric automakers, Daimler AG, BMW AG, and Volkswagen AG might soon close by or surpass Tesla in the EV market. The ranking comes from PA Consulting, a consultancy specializing in management consulting, technology and innovation. Their ranking system factors in the strategy, battery technology, culture, supplier networks, partnerships and financial performance into an overall score. While this couldn’t be farther from reality (with the current state of affairs), the sheer might – engineering, design, production and financial aspects of the car industry. With that in mind, the German car makers are on a path to might swivel the odds in their favor within the next few years.

According to the forecast set by consultancy, Tesla is to remain the king of the castle to at least 2021. This is the time when the traditional rivals are set to flood the market with a variety of fully electric models, giving Tesla a run for their money. The forecast doesn’t go easy on Tesla, as it weighs down the California based automaker with a fall to seventh place. The pecking order in 2021 should see Daimler firmly at the helm. The Stuttgart based vehicle industry giant is then closely followed by BMW, the Renault Nissan Mitsubishi alliance and finally, the dieselgate struck, but clearly not that hurt – Volkswagen – filling the list’s last top spot before Tesla.

BMW Concept iX3

“Achieving CO2 targets and improving e-mobility performance go hand in hand,” Thomas Göttle, head of PA Consulting’s automotive business, said in a statement. “For the manufacturers, however, this also involves a great need for action in terms of organization and personnel.”

For Tesla, the highly-touted production issues, matched with an uncertain profit outlook, all played a major key in the lower ranking for the U.S carmaker, according to PA Consulting. However, there’s a long way to go until 2021, and Tesla Motors may well turn the tide. Their production woes are slowly becoming less of a burden, new markets are emerging for the electric car maker and overall, the demand for electric cars is ever growing.

Looks like we’ll find out in 2021 if this prediction turns out to be accurate.

Daimler trucks delivers first FUSO eCanter all-electric trucks to customers in Europe

Daimler Trucks is delivering the first units of its all-electric FUSO eCanter to European customers: DHL, DB Schenker, Rhenus and Dachser. The customers are all in the logistics business, but the trucks’ areas of operation are diverse. The customers obtain their vehicles via a 24-month rental from CharterWay, Daimler’s own rental and leasing expert in the commercial vehicle business.

• Deutsche Post DHL will use its six vehicles in two business divisions: two vehicles will perform inner city delivery runs of business and private customers of DHL Freight’s Berlin branch, for heavy individual cargo, such as electrical or large household appliances. DHL Paket will use four vehicles for the delivery of goods to businesses and corporate clients. For this, the electric trucks will be fully integrated in existing business processes and will replace the vehicles with conventional drivetrains which were used so far.
• DB Schenker will test its series production electric vehicle sfor inner city logistics under real-life production conditions. Among other tasks, one of the three trucks will deliver and collect general cargo in the inner city of Berlin.
• Rhenus Group will use its three FUSO eCanter within its home delivery unit. From the central warehouse in Hoppegarten, the all-electric trucks will deliver furniture, consumer electronics, home appliances and heavy sport equipment to the inner city of Berlin.
• Two more FUSO eCanter will be driving for the transport company Dachser. Their job will be the general goods transportation core business on the last mile, meaning pallets with industrial goods either at micro-hubs or goods that are delivered directly to the customer, as well as collecting goods and delivering them to the Dachser-branches. At these branches, the eCanters will recharge overnight using a high-voltage loading station.

Over the next years, Daimler subsidiary Mitsubishi Fuso Truck and Bus Corporation (MFTBC) is planning to deliver a total of 500 trucks of this generation to selected customers. The large-scale series production is planned to start in 2019. In the US, FUSO eCanter are already committed for delivery for the logistics company UPS and in Japan the convenience-store chain Seven-Eleven and Yamato Transport each will operate 25 eCanter in their fleets.

At the Tokyo Motor Show at the end of October, MFTBC announced it will electrify its entire range of trucks and buses of its FUSO brand in upcoming years. With the new product brand E-FUSO, MFTBC becomes the first OEM with its own electric brand for trucks and buses. In the following years all FUSO truck and bus models will offer an additional electric variant. The timing for the launch of each model will be defined according to the required technology and feasibility.

FUSO eCanter. Depending on body and field of application the eCanter has a load-bearing capacity of up to 4.5 tons. The vehicle’s electric power train contains six high-voltage lithium-ion batteries with each 420 V and 13.8 kWh. An electric drivetrain with a strong permanent-magnet-motor delivers 129 kW (180 hp) via a single-gear transmission in the rear axle; continuous torque is 285 N·m. The maximum speed of the eCanter is limited to 80 kilometers per hour (50 mph). The batteries with a total weight of approximately 600 kilograms allow a range of more than 100 kilometers (62 miles).

Daimler To Introduce Electric School Bus To US In 2019

The yellow school bus is a social icon. It projects an image of bright eyed children eagerly anticipating the acquisition of knowledge during the upcoming school day as they wend their way through the cities and towns all across America. We think of them as zones of safety for our most precious cargo, but in fact they are enclosed metal tubes that subject school children to all the same diesel pollutants that got Volkswagen into so much trouble recently.

Why we throw our arms up in horror when Volkswagen sells diesel powered cars that exceed legal limits for tailpipe emissions and put those responsible in jail for their actions but happily consign school children to riding in diesel powered vehicles to and from school every day is a great mystery. Do we think the diesel engines in those buses run cleaner than the passenger car engines in those Volkswagens? It is to laugh.

In addition to carbon dioxide, the diesels in school buses spew huge quantities of NOx and sulfur dioxide emissions out their tailpipes. As they sit idling outside at the end of the school day, they create a massive cloud of atmospheric crud our kids have to inhale as they clamber aboard. Not only that, each one consumes about 23,000 gallons of diesel fuel each year. Multiply that by the nearly half a million school buses on the road in the US and your are talking about a massive amount of money taxpayers have to spend for the fuel to keep them running.

In the fight to lower pollution from internal combustion engines, the biggest environmental rewards come from electrifying the vehicles that depend most heavily on diesel engines — garbage trucks, delivery trucks, freight trucks, and school buses. Electric school buses are just starting to become available. Massachusetts this year committed to $1.4 million to an electric school bus pilot program for four communities. Just like passenger cars, electric buses cost more to buy but can save communities money in the long run thanks to lower fuel and maintenance costs. Plus, there are the benefits that come from breathing cleaner air.

Motiv Power is introducing electric school buses in California, where 13 will be operating shortly. Now Daimler, which owns Thomas Built Buses, says it will begin selling an electric school bus with a range of 100 miles beginning in 2019. Thomas currently is the dominant manufacturer of school buses, with a market share just under 40%. So this announcement could have a major impact on the US school bus market going forward.

The Verge reports the electric school bus from Thomas will be built on the company’s standard Saf-T-Liner C2  chassis. Nicknamed “Jouley,” it seats 81 children and is powered by a 60 kWh battery. Fleet operators who need longer range can opt for additional battery packs. Since most school buses are used for short periods of time in the morning and the afternoon, keeping the batteries charged up shouldn’t be an issue.

This is another important step in the electrification of the US transportation fleet. Since children are so impressionable, riding in a clean, quiet electric school bus during their early years will make them less tolerant of smelly, noisy cars later in life. An appreciation for electric vehicles may be an important life lessons for America’s future leaders.

Mercedes Unveils eCanter Electric Truck, Partners With StoreDot On Fast Charging Batteries

Daimler has unveiled its Fuso branded eCanter electric truck in Manhattan. Mitsubishi Fuso is part of the Daimler Truck Group, along with Freightliner and Mercedes Benz. The eCanter electric light duty delivery truck has been under development for several years and will be manufactured in Tramagal, Portugal. It goes on sale in the US, Europe, and Japan starting later this year, according to a company press release.

Fuso eCanter Electric Truck

The Fuso eCanter has a range of 100 kilometers and a load capacity up to three and a half tons depending on body type and usage. Its electric powertrain consists of six 420 volt lithium ion battery rated at 13.8 kWh each. In comparison with a conventional diesel truck, its projected operating costs are at least $1,000 less for every 6,000 miles traveled. Seven Eleven Corporation has already agreed to add 25 of the new electric delivery vans to its fleet in Japan and UPS says it will add them to its US fleet of sustainable vehicles.

Marc Llistosella, head of Mitsubishi Fuso Truck and Bus Corporation and Daimler Trucks Asia says, “In times when everybody is talking about electric trucks, we are the first to actually commercialize a series produced all electric truck. Having a long history in alternative drivetrains, we are proud to step into this new era. Our FUSO eCanter comes with years of customer testing, and the assurance of parts, services, and warranty through our global FUSO dealership network.”

“Our new FUSO eCanter now addresses the increasing global deand for products to meet and exceed high CO2 emission standards. It offers an attractive and cost-effective alternative to combustion engines and makes electric trucks key to the future of inner city distribution”, Llistosella added.

StoreDot Partnership

The introduction of the eCanter is only part of the good news coming from Daimler regarding electric trucks this week. It has also partnered Israeli startup StoreDot, which claims it has created a battery like the ones needed for electric trucks that can be recharged in as little as 5 minutes. StoreDot has recently completed a funding round which raised $60 million, thanks in large part by leadership from Daimler according to Venture Beat.

StoreDot’s FlashBattery technology is uniquely suited for commercial vehicles that start and stop repeatedly during daily use because the system maximizes the benefits of regenerative braking. That means a vehicle can travel further before it needs recharging.

Dr. Doron Myersdorf, CEO of StoreDot, says, “Having Daimler, a world leader in the automotive field, as a strategic partner is of significant value to StoreDot. It will accelerate the completion of our development process and the introduction of FlashBattery to the market. Together with Daimler teams, we create synergies that optimize the characteristics of our innovative solutions with the requirements of the electric vehicles of the future.”

If StoreDot can make 5 minute charging the norm, the electric car and truck revolution will be complete.

Smart Autonomous Car Concept To Debut In Frankfurt

Daimler revealed a new electric concept car this past week by introducing the Smart vision EQ fortwo, a car that combines familiar Smart design elements with some forward-thinking technology. Unsurprisingly, self-driving is front and centre of this concept, demonstrating Daimler’s commitment to its own car2go service, and asserting its intention to be a key player in the future of urban mobility.

Indeed, car2go was specifically called out in the announcement of this concept vehicle, which cited 2.6 million global users renting a car with the service every 1.4 seconds. What do car2go’s existing users have to do with a concept car? Even a passing look at the Smart vision EQ’s features shows how this could be a terrific step forward in the landscape of urban carsharing.

The concept is focused around a swarm intelligence software. This technology would base an algorithm on existing user data, allowing the car to make itself available in high-demand areas. Users would then book a vehicle that would come to them, rather than seek an available vehicle nearby in the app. Second, the onboard battery, just 30 kWh, is designed for automatic charging between trips at power stations and inductive charging docks.

The most striking design feature of the Smart vision EQ are the large glass doors, which not only offer an incredible view for passengers, but also become interior and exterior facing displays — perhaps to provide traffic and weather updates, or to act as digital advertising billboards. An additional two exterior LED displays positioned in the registration plate positions at the front and rear of the vehicle provide user information, including the availability of the vehicle in question, or the name of the user who booked it.

The Smart vision EQ fortwo is just a concept, but for those who can’t wait to ditch diesel, Daimler’s Smart fortwo electric is the cheapest electric car in the US. You can also see how it compares by reading our other electric car reviews.

Concept vehicles such as this raise some interesting questions. Will anyone living in a city actually own their own car in the near future? Or will we all be driving the sharing economy, ordering a car that will arrive at our location, on demand? With the Smart vision EQ fortwo, it certainly seems that Daimler has a commitment to smoothing out some of the technological bumps in the road for shared, self-driving electric vehicles. It’s not unreasonable to say that this future will soon become reality in cities around the world.

Mercedes Will Have A Plug-In Fuel Cell SUV In 2017

When it comes to powertrains of the future, Mercedes cannot be accused of putting all its eggs in one basket. It says 48 volt mild hybrid systems will proliferate across its enter model line up in coming years. It is rushing to get plug-in hybrid cars on the market as soon as possible and says it will have a long range electric SUV on offer by 2019.

Now comes word that Mercedes will bring a new kind of car to market next year — a plug-in fuel cell SUV that can be powered by a battery or a hydrogen fuel cell. Based on the GLC model, it will have a range of about 300 miles before it needs to be recharged and/or refueled. Range on battery power alone is said to be 30 miles. The car is part of the $10.67 billion investment green technology Mercedes plans to make through the end of 2017.

“Daimler sees several different drive technologies co-existing in the future,” says Thomas Weber, head of development for Mercedes. “We have a broad portfolio of vehicles from compact cars to heavy trucks that require us to think holistically.”

The company first offered a fuel cell vehicle in 2010, when it started selling a small number of B-Class fuel cell compact cars. The technology is attractive because hydrogen tanks can be filled in about the same time as it take to pump a tankful of gasoline or diesel fuel. Still, a lack of hydrogen refueling stations is preventing many customers from actively considering a fuel cell car.

The pressure to invest in a range of new technologies despite low sales of hybrid and electric cars suggest more collaboration between car makers in the future in an attempt to reduce development costs of new technology. Christian Mohrdieck, who is the head of fuel cell development for Mercedes, says, “We’ll probably see more cooperation. There’s the advantage to save costs and also bundle volumes.”

Nissan Plans Electric Crossover And Sports Car

Nissan senior vice president Shiro Nakamura, in an interview with AutoCar, says the company is hard at work on a new vehicle architecture suitable for both conventional and electric powertrains.  “We don’t want to limit our EVs just to the Leaf,” said. “We’re the leading EV manufacturer, but I don’t think we can make it just off one EV, so we want to grow the portfolio — that’s our next plan. It could be a crossover, it could be a sports car; we see much more opportunity for EVs than just a hatchback.”

Nissan ESFlow electric sports car concept from 2011. Photo Credit: Green Car Reports. 

Those simple words clearly illustrate why Tesla is poised to take over the car business. Every other manufacturer is hedging its bets by building cars that can be powered by any source — gasoline, diesel, hybrid, plug-in hybrid, battery, CNG, LNG, propane, fuel cell, or magic dust. Only Tesla is all in on electric cars. It is years ahead of the competition. By the time the others get where Tesla is today, its lead on the industry will have only increased.

Nakamura says Nissan is thinking about making an electric sports car. Really? What is the sports car share of the global market — 1%? 2%? Why divert precious resources to build a sports car when the need for a long range electric car is critical? Nissan will be limping along with a short range sedan for another 2 years. By the time the second generation LEAF arrives, the original car will be nearly 8 years old. That’s an eternity in the car business.

Nissan may also build an electric crossover — some day. Well, d’uh, Nakamura-san. The crossover is only the hottest segment of the car market. Why in the world don’t you have an electric crossover in showrooms right now? How difficult would it be to turn the LEAF into a 5 door hatchback? Why are Chevrolet and Tesla able to promise electric cars with at least 200 miles of range when Nissan is stuck with a wimpy 107 mile battery?

Carlos Ghosn, CEO of Renault/Nissan says he welcomes the competition from the Tesla Model 3. Really, Carlos? You have nothing in the pipeline that can touch the Model 3. For the same money, you are offering the public an ugly 8 year old car with no autonomous driving capability, an outdated interior, and embarrassingly little range for the same money. You think your car is competition for the Model 3? Oh, please.

Last week in Berlin, Daimler shareholders gave senior management an earful about why it has no answer for the Model 3. Nissan shareholders could ask the same question of Ghosn. All the top car executives in the world are beating their gums about how they will have cars to compete with Tesla in 5 years or so. And every time they make those claims, they admit just how much Tesla has caught them by surprise with their pants down around their ankles.

So Nissan, go ahead. Build your electric sports car for 2021 — if you are still in business by then.

Source: AutoCar.

Daimler Shareholders Worried by Tesla Model 3 News

A survey by German automotive magazine AutoBild finds that 2/3 of Germans who responded would consider purchasing a Tesla Model 3. The hype and hyperbole surrounding the launch of the Model 3 and the nearly 300,000 reservations Tesla booked for the new car in the first few days have Daimler investors worried.

Mercedes’ Electric Concepts Less Desirable Than Tesla Model 3

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At the company’s annual stockholder’s meeting in Berlin this week, several people openly criticized Daimler management for not having an effective response to the Tesla challenge. Daimler stock is down about 20% so far this year. To add insult to injury, the Tesla Model S is outselling the mighty Mercedes S Class in most markets, even in Germany where people are usually fiercely loyal to German brands.

According to a report on the Financial Times, Ingo Speich, portfolio manager for Union Investment, told senior management the capital markets are concerned the “fat years” for premium German car makers are over. The automobile industry is looking at “a radical upheaval, driven by attacks from Silicon Valley,” he said.

More than one shareholder wanted to know what Daimler is doing to meet the challenge from Tesla. “We don’t really have a product for this competition from Tesla. In the long term we have some great vehicles . . . but they are virtual at this point,” one said. Another worried that the company had no answer to the Model 3. “What is the reason for that?” he asked.

Daimler CEO Dieter Zetsche assured the audience that his company will respond. It plans to have 10 plug-in hybrid vehicles in its product lineup in 2017. It also will have an electric car with at least 300 miles of range by the end of he decade. He went on to say that Daimler is in the forefront of new technologies, including autonomous driving systems. There are reports that Uber has placed an order for 100,000 self-driving Mercedes S Class sedans, although details about the deal are sketchy.

So far this year, Daimler’s share price has fallen 20%. BMW shares are off 25%. Clearly, investors are nervous about the future of luxury car sales. Zetsche did have some good news for investors, though. He announced that Mercedes sales were up 13% in the first quarter compared to the same period in 2014.

Manfred Bischoff, chairman of Daimler’s board of directors, admitted that the company needs to be bolder and more daring. He called it “a balancing act” for Daimler to innovate in technologies including self-driving cars, while also maintaining its strength as a leader in traditional, premium cars. The company’s latest autonomous concept car is called the Mercedes Vision, which was featured at the Tokyo auto show earlier this year.

The auto industry is facing a conundrum. No manufacturer can afford to turn its back on the cars that generate the most sales and the most profits. Tesla has no such concerns, since in doesn’t build any conventional cars at all. The tug of war between the traditional car companies and the future of transportation that Tesla represents will be fascinating to watch.

Photo credit: Daimler